The human obsession with predictable consumption—the unwavering need for sustenance and, let’s be honest, comfort—has given rise to some fascinating financial instruments. Today, we examine two such examples: the Invesco Food & Beverage ETF (PBJ +0.45%) and the iShares US Consumer Staples ETF (IYK +0.80%). One, a rather focused attempt to capitalize on the enduring appeal of biscuits and beverages; the other, a broader, more diversified collection of things people will buy even when convinced the universe is about to end. (Which, statistically, is a more frequent occurrence than most people realize.)
Both ETFs, you see, are built on the premise that people must eat, drink, and maintain a basic level of hygiene. It’s a fairly safe bet, historically speaking. But the devil, as always, is in the details—and, in this case, the expense ratios. The question isn’t simply what people buy, but how efficiently you can profit from their predictable behavior.
Snapshot (Cost & Size)
| Metric | PBJ | IYK |
|---|---|---|
| Issuer | Invesco | iShares |
| Expense ratio | 0.61% | 0.38% |
| 1-yr return (as of Jan. 22, 2026) | 0.7% | 7.7% |
| Dividend yield | 1.8% | 2.6% |
| AUM | $95.7 million | $1.2 billion |
The 1-yr return represents total return over the trailing 12 months. (Or, approximately the time it takes for a particularly determined fruit fly to complete several generations.)
IYK, it appears, is the more fiscally responsible option. A lower expense ratio and a higher dividend yield suggest a more efficient extraction of value from the consumer staples sector. PBJ, while not entirely unreasonable, demands a slightly larger tribute for the privilege of investing in its curated selection of edible and potable goods.
Performance & Risk Comparison
| Metric | PBJ | IYK |
|---|---|---|
| Max drawdown (5 y) | -15.84% | -15.04% |
| Growth of $1,000 over 5 years | $1,239 | $1,162 |
What’s Inside
IYK casts a wider net, encompassing 54 U.S. consumer staples companies, with a definite leaning towards established, household names. Approximately 84% of its holdings fall into the ‘consumer defensive’ category, with another 12% allocated to healthcare. Top positions are held by such titans as Procter & Gamble (PG +0.86%), Coca-Cola (KO +1.41%), and Philip Morris International (PM +1.75%). It’s been around for 25.6 years, which, in ETF terms, is roughly equivalent to the age of a particularly resilient redwood. (Though considerably less photosynthetic.)
PBJ, by contrast, is laser-focused on the food and beverage industry, with 89% of its portfolio dedicated to this sector. A smaller percentage is allocated to basic materials (presumably packaging) and consumer cyclicals (impulse purchases, perhaps?). Its top holdings—Monster Beverage (MNST +1.37%), Corteva (CTVA +0.20%), and The Hershey Co (HSY +0.36)—reflect this narrow focus. This approach may appeal to investors who believe the future of finance is inextricably linked to the consumption of chocolate and caffeinated beverages.
For further guidance on navigating the complex world of ETF investing, a comprehensive guide is available at this link. (Warning: May contain diagrams and footnotes.)
What This Means for Investors
Both IYK and PBJ tap into the enduring appeal of consumer staples—the everyday necessities people purchase regardless of economic conditions. In times of market volatility, these stocks often exhibit greater resilience than more speculative sectors, because, well, people still need to eat. This provides a certain “sleep well at night” quality, although the quality of sleep is, of course, subjective and influenced by a multitude of factors, including but not limited to caffeine intake and the existential dread of knowing your investments are ultimately subject to the whims of the universe.
However, there’s a crucial difference: IYK embraces a broad, blue-chip strategy, while PBJ concentrates specifically on the food and beverage industry. And the performance gap is… noticeable. IYK delivered a respectable 7.7% return in 2025, significantly outperforming PBJ’s rather flat performance. IYK’s diversification, including a 12% allocation to healthcare stocks, helped it weather sector-specific headwinds. PBJ’s concentrated focus left it vulnerable to rising ingredient costs and shifting consumer preferences towards cheaper, store-brand alternatives. The expense ratio difference further exacerbates this disparity: IYK charges 0.38% versus PBJ’s 0.61%, and its 2.6% dividend yield comfortably exceeds PBJ’s 1.8%.
If you’re seeking a defensive core holding, IYK is the more sensible choice. It’s a straightforward option for investors who want broad exposure to everyday essentials without placing a concentrated bet on any single industry. The higher dividend provides a steady stream of income, which can be used to purchase… more consumer staples. Opt for PBJ only if you possess an unwavering conviction that food and beverage companies will outperform the broader consumer staples sector, and you’re willing to pay nearly double the fees for that concentrated bet. (And perhaps consult a therapist to explore the underlying psychological reasons for your obsession with biscuits and beverages.)
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2026-01-25 20:44